What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of state of Economy Rate of return if state occurs Boom 30% 15% Normal 65% 12% Recession 5% 6% Average 33% 11%
What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of state of Economy Rate of return if state occurs Boom 30% 15% Normal 65% 12% Recession 5% 6% Average 33% 11%
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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2. What is the standard deviation of the returns on a stock given the following information? | |||||
State of Economy | Probability of state of Economy | ||||
Boom | 30% | 15% | |||
Normal | 65% | 12% | |||
Recession | 5% | 6% | |||
Average | 33% | 11% |
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